1) Real estate has long been an established investment class, providing returns from rental income and capital appreciation. However, it is not a liquid investment and requires careful timing to generate returns.
2) The article analyzes various indicators to determine if real estate is a wise investment currently, such as price-to-rent ratios, global real estate trends, and mortgage default rates.
3) While real estate prices often rebound after banking crises, on average it takes 6 years for full recovery. For long-term investors, real estate can still generate positive returns despite short-term volatility.
Investors play a critical role in both the recovery and future of the housing market by acquiring non-performing loans and single-family homes. Unlike other markets, investing in housing is not a zero-sum game as investors' and borrowers' interests can be aligned through strategies like loan modifications and rental conversions. Carrington offers several residential investment strategies including acquiring non-performing loans and single-family rentals to help stabilize communities and transition borrowers while generating returns.
http://www.MinneapolisStPaulHomes.com This RE/MAX brochure explains some of the tips and techniques to successfully purchase minneapolis rental and sairnt paul rental properties and well as rental real estate throughout Minnesota.
1. Money market instruments are short term debt instruments with maturities of less than one year. Common money market instruments include treasury bills, commercial paper, certificates of deposit, call money, notice money and repos.
2. Government securities are sovereign debt instruments issued by the Government of India to finance its budgetary requirements. Some key features of government securities are that they are considered risk-free and provide guaranteed periodic interest payments and principal repayment.
3. Other money market instruments discussed include money market mutual funds, commercial bills, inter-corporate deposits, bankers' acceptances and inter-bank participation certificates. These instruments provide short term funding options for corporations, banks and other financial institutions.
This document discusses how stock market transactions occur. It describes how investors place orders with brokers to buy and sell stocks. It also discusses different order types like market orders, limit orders, and stop orders. The document then covers margin trading, short selling, and investing in stock indexes. It explains how trades are executed, including the roles of floor brokers, specialists, and market makers. It also discusses how electronic communication networks and program trading have changed how orders are handled.
Real estate publication - RealtyReality - Grant Thornton IndiaMarcom18
This publication provides insights on the commercial real estate market, which is bearing the brunt of subdued economic activity, high cost of finance and falling rental incomes.
www.wcgt.in/publications
Ploutus Advisors is a real estate advisory firm based in Los Angeles that provides unbiased and conflict-free consulting services to commercial clients. The document discusses key topics in commercial real estate finance including the differences between capital and operating leases, the potential impact of proposed changes to lease accounting standards, and how these changes could significantly affect companies' financial reporting and metrics.
Stock offerings and monitoring investo r 6Rika Hernawati
Investors participate in both the primary and secondary stock markets. In the primary market, corporations issue initial public offerings (IPOs) of stock to raise capital, while secondary stock offerings allow existing public companies to raise additional funds. The secondary market provides liquidity for investors and corporations through public stock exchanges like the NYSE and Nasdaq. Investors monitor corporations and influence them through activities like proxy voting in order to maximize the value of their stock holdings over time.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
Investors play a critical role in both the recovery and future of the housing market by acquiring non-performing loans and single-family homes. Unlike other markets, investing in housing is not a zero-sum game as investors' and borrowers' interests can be aligned through strategies like loan modifications and rental conversions. Carrington offers several residential investment strategies including acquiring non-performing loans and single-family rentals to help stabilize communities and transition borrowers while generating returns.
http://www.MinneapolisStPaulHomes.com This RE/MAX brochure explains some of the tips and techniques to successfully purchase minneapolis rental and sairnt paul rental properties and well as rental real estate throughout Minnesota.
1. Money market instruments are short term debt instruments with maturities of less than one year. Common money market instruments include treasury bills, commercial paper, certificates of deposit, call money, notice money and repos.
2. Government securities are sovereign debt instruments issued by the Government of India to finance its budgetary requirements. Some key features of government securities are that they are considered risk-free and provide guaranteed periodic interest payments and principal repayment.
3. Other money market instruments discussed include money market mutual funds, commercial bills, inter-corporate deposits, bankers' acceptances and inter-bank participation certificates. These instruments provide short term funding options for corporations, banks and other financial institutions.
This document discusses how stock market transactions occur. It describes how investors place orders with brokers to buy and sell stocks. It also discusses different order types like market orders, limit orders, and stop orders. The document then covers margin trading, short selling, and investing in stock indexes. It explains how trades are executed, including the roles of floor brokers, specialists, and market makers. It also discusses how electronic communication networks and program trading have changed how orders are handled.
Real estate publication - RealtyReality - Grant Thornton IndiaMarcom18
This publication provides insights on the commercial real estate market, which is bearing the brunt of subdued economic activity, high cost of finance and falling rental incomes.
www.wcgt.in/publications
Ploutus Advisors is a real estate advisory firm based in Los Angeles that provides unbiased and conflict-free consulting services to commercial clients. The document discusses key topics in commercial real estate finance including the differences between capital and operating leases, the potential impact of proposed changes to lease accounting standards, and how these changes could significantly affect companies' financial reporting and metrics.
Stock offerings and monitoring investo r 6Rika Hernawati
Investors participate in both the primary and secondary stock markets. In the primary market, corporations issue initial public offerings (IPOs) of stock to raise capital, while secondary stock offerings allow existing public companies to raise additional funds. The secondary market provides liquidity for investors and corporations through public stock exchanges like the NYSE and Nasdaq. Investors monitor corporations and influence them through activities like proxy voting in order to maximize the value of their stock holdings over time.
This document discusses how the global financial crisis has created new challenges for financial institutions and I.T. departments. It notes that the "new hard times" are characterized by tighter credit, declining property prices, and increased regulation. This has put pressure on financial institutions to focus on survival through compliance and risk management, but they still need to enable growth. The document argues that traditional I.T. systems are a barrier to addressing both survival and growth needs, as they are inflexible, create information silos, and slow product development.
NationalREORelief.com Provides a One-Stop Solution for Banks and Lending Institutions with REO PORTFOLIOS. We Will Meet Your Most Pressing Concerns and Needs With one or More Customized Services. These Services Include Acquisitions by NRR, Management and Sales via Auction or Traditional Brokerage Methods.
Published SwapRent Paper in IUHF by Ralph LiuRalph 刘冶民 Liu
The document describes the SwapRentSM concept, which allows homeowners to switch between economically owning and renting their home for a period of time. This is done through a SwapRentSM contract with an economic landlord investor. It allows homeowners to receive cash flow while someone else takes on the property's appreciation or depreciation risk. The contract aims to separate a home's economic value from its shelter value. It also describes how the contracts work and are settled, using a generic example of a homeowner becoming a 50% economic renter through a SwapRentSM transaction.
The document discusses working capital management. It covers objectives of working capital management including optimizing current asset investment and ensuring liquidity. It also discusses components of working capital like cash, receivables, inventory, payables. It describes factors that impact working capital requirements like nature of business, production policy, market conditions. The document also discusses approaches to working capital management including balance sheet and process approaches.
Paradigm Shift Investing In Illiquid Assets Nov 2008Xavier_Timmermans
This document discusses the advantages of investing in illiquid assets. It argues that illiquidity can provide higher returns through an illiquidity premium. During times of crisis, like the current credit crunch, the illiquidity premium increases significantly as investors demand liquidity. The document examines why some investors accept restricted liquidity in hedge funds, private equity, and credit markets to target higher returns. However, it also notes that illiquidity can increase risks for hedge funds during periods of market stress when liquidity is needed.
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
This document provides an overview of money market securities, including Treasury bills, commercial paper, negotiable certificates of deposit, and repurchase agreements. It discusses the key characteristics of each type of security such as typical maturities, minimum denominations, how they are issued and traded, and how yields are estimated. The chapter also examines how these short-term instruments provide liquidity to both issuers and investors.
This document provides an overview of credit derivatives, including:
- Their origin in the 1980s securitization market and formal launch in 1991.
- Definitions, including that they allow one party to transfer credit risk of a reference asset to another party.
- Types, including credit default swaps, total return swaps, and credit linked notes.
- Benefits for banks and financial institutions, such as freeing up capital, maintaining client relationships, constructing customized risk portfolios, and diversifying credit risk.
Sale-leasebacks also supported overall growth, stockpiling equity and restructuring existing debt. Fortune 500 companies sold regional and national headquarters. Industrial conglomerates sold large distribution centers and portfolios of assets, respectively. Municipalities sought to lower deficits and balance budgets with government service assets by heading to the sale leaseback table.
This document discusses important considerations for buying an investment property, including having adequate funds, investing for the long-term, and seeking expert advice. The type and location of the property will impact returns, so investors should carefully research options before purchasing. Getting the right financing is also key to ensuring the investment is viable and does not burden the investor with high interest costs.
This document discusses important considerations for buying an investment property, including having adequate funds, investing for the long-term, and seeking expert advice. The type and location of the property will impact returns, so investors should carefully research options before purchasing. Getting the right financing is also key to ensure the investment is profitable and does not burden the investor with high interest costs.
The document discusses opportunities for the Singapore Stock Exchange (SGX) in the post-economic crisis environment. It notes that consumer conventions have consolidated across geographies, presenting an opportunity for SGX. It suggests SGX focus on simplification, fairness, and honesty. Specifically, SGX could communicate around new "currencies" like time, information, energy, space, money, and conventions. The branding should be reverent of social context, technology, economics, the environment, and politics. SGX represents the confluence of companies, retail investors, regulators, and more.
FUNDING PPP PROJECTS IN THE CURRENT CLIMATE: Amelia Henning, Royal Bank of Ca...Cathedral Group Plc
Amelia Henning, Vice President at Royal Bank of Canada, discusses funding challenges for public-private partnership (PPP) projects in the current economic climate. While conditions are difficult with high borrowing costs and policy hostility, she argues opportunities remain through decentralization, shaping new policy, and attracting long-term institutional investment. PPPs can succeed by ensuring stable long-term cash flows, strong sponsors, and sensible risk allocation. The right funding sources match the risk profile of construction and operational phases. Well-structured regeneration projects should be fundable if they meet investor needs.
Dear,
“WealthPreneurs Advisory Services” & “IMS proschool” announces the launch of CFP regular classroom training program at Deogiri College, Aurangabad.
A brief overview of the program and the course content is given below.
1) Introduction to Financial Planning*
2) Risk Management & Insurance
3) Retirement Planning & Employee
4) Investment Planning
5) Tax Planning & Estate Planning
6) Advanced Financial Planning (Case Studies)
Duration
6 months (120+ hour’s approx)
Other details
38 online tutorials
Study kit
Online Mock test
Fee Structure
CATEGORY
REGULAR FEE
Regular
36000
Schedule
Sunday (9.30-1.30pm)
For more details, CFP broucher is attached.
For further details email us at, devendrap@proschoolonline.com ,
imsproschool.aurangabad@gmail.com or call +91 800 763 9503
--
Warm Regards,
Devendra Pandit
WealthPreneurs Advisory Services,
In association with - IMS proschool,
Contact Number: +91 800 763 9503.
+91 810 889 7001.
Office Address: Plot No. 8, Anupam Society,
Shrey Nagar, Osmanpura,
Aurangabad, Maharashtra.
P Please consider the environment before printing this email.
The document discusses the marketing of real estate investments. It begins with an introduction to publicly and privately held commercial real estate, as well as an international perspective. It then presents a case study of Falcon Real Estate Investment Company and their chief marketing officer. The document concludes by discussing traditional and alternative global asset classes in real estate and how real estate investing has evolved with private equity models.
1. Captive insurance is becoming more viable for middle-market companies as a way to customize coverage to their needs and gain more control over claims payments compared to traditional commercial insurers.
2. Choosing the right domicile is important, as not all jurisdictions are the same. For a captive to be economically feasible, it needs to operate in a jurisdiction with an efficient and accessible regulatory environment.
3. Proper tax structuring and management of the captive insurer is critical to achieve tax benefits under the Internal Revenue Code and avoid penalties. With the right advisors, captives can provide benefits to middle-market companies while complying with tax laws.
The document is a glossary of financial terms organized alphabetically from A to Z. It provides definitions for over 100 financial terms, ranging from basic terms like "asset" to more specialized terms like "Samurai bond". The definitions are brief but aim to concisely explain the essential meaning and context of each term.
1. The document discusses a corporate trade strategy where companies can sell underperforming assets at full value in the form of trade credits, rather than liquidating assets at a discount.
2. These trade credits can then be used to purchase goods and services, creating cash savings. For example, a company sells $1 million of inventory and receives $1 million in trade credits to purchase media over 3 years.
3. Accounting guidelines require recognizing trade credits as a prepaid expense if utilization is reasonably assured. In this example, the company recognizes a $1 million prepaid asset upfront over the 3 year contract period.
AeFT Original Swap Rent (SM) Product Design White PaperRalph 刘冶民 Liu
This is the combination of the various original SwapRent (SM) and its related consumer financial products, indexing methodology and secondary market REIDeX design white papers written in early 2006. The subsequent patent applications were based on this combined document of those original research papers.
The document discusses financial intermediaries and their role in financial markets. It describes how financial intermediaries such as banks, credit unions, insurance companies, pension funds, finance companies, and mutual funds facilitate borrowing and lending between savers and borrowers. They do this by raising funds from many savers and pooling them to make loans to many borrowers, helping to reduce transaction costs and risks for both groups. The document also discusses some regulatory policies for ensuring the soundness of financial intermediaries.
Zašto je web upotrebljivost važan faktor pri izradi web stranica?Dario Suveljak
"Klikom do frustracije" je prezentacija koja govori o najčešćim problemima, zaprekama i kritičnim točkama sa kojima se Internet korisnici svakodnevno susreću prilikom korištenja web stranica, web kataloga i web trgovina.
NationalREORelief.com Provides a One-Stop Solution for Banks and Lending Institutions with REO PORTFOLIOS. We Will Meet Your Most Pressing Concerns and Needs With one or More Customized Services. These Services Include Acquisitions by NRR, Management and Sales via Auction or Traditional Brokerage Methods.
Published SwapRent Paper in IUHF by Ralph LiuRalph 刘冶民 Liu
The document describes the SwapRentSM concept, which allows homeowners to switch between economically owning and renting their home for a period of time. This is done through a SwapRentSM contract with an economic landlord investor. It allows homeowners to receive cash flow while someone else takes on the property's appreciation or depreciation risk. The contract aims to separate a home's economic value from its shelter value. It also describes how the contracts work and are settled, using a generic example of a homeowner becoming a 50% economic renter through a SwapRentSM transaction.
The document discusses working capital management. It covers objectives of working capital management including optimizing current asset investment and ensuring liquidity. It also discusses components of working capital like cash, receivables, inventory, payables. It describes factors that impact working capital requirements like nature of business, production policy, market conditions. The document also discusses approaches to working capital management including balance sheet and process approaches.
Paradigm Shift Investing In Illiquid Assets Nov 2008Xavier_Timmermans
This document discusses the advantages of investing in illiquid assets. It argues that illiquidity can provide higher returns through an illiquidity premium. During times of crisis, like the current credit crunch, the illiquidity premium increases significantly as investors demand liquidity. The document examines why some investors accept restricted liquidity in hedge funds, private equity, and credit markets to target higher returns. However, it also notes that illiquidity can increase risks for hedge funds during periods of market stress when liquidity is needed.
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
This document provides an overview of money market securities, including Treasury bills, commercial paper, negotiable certificates of deposit, and repurchase agreements. It discusses the key characteristics of each type of security such as typical maturities, minimum denominations, how they are issued and traded, and how yields are estimated. The chapter also examines how these short-term instruments provide liquidity to both issuers and investors.
This document provides an overview of credit derivatives, including:
- Their origin in the 1980s securitization market and formal launch in 1991.
- Definitions, including that they allow one party to transfer credit risk of a reference asset to another party.
- Types, including credit default swaps, total return swaps, and credit linked notes.
- Benefits for banks and financial institutions, such as freeing up capital, maintaining client relationships, constructing customized risk portfolios, and diversifying credit risk.
Sale-leasebacks also supported overall growth, stockpiling equity and restructuring existing debt. Fortune 500 companies sold regional and national headquarters. Industrial conglomerates sold large distribution centers and portfolios of assets, respectively. Municipalities sought to lower deficits and balance budgets with government service assets by heading to the sale leaseback table.
This document discusses important considerations for buying an investment property, including having adequate funds, investing for the long-term, and seeking expert advice. The type and location of the property will impact returns, so investors should carefully research options before purchasing. Getting the right financing is also key to ensuring the investment is viable and does not burden the investor with high interest costs.
This document discusses important considerations for buying an investment property, including having adequate funds, investing for the long-term, and seeking expert advice. The type and location of the property will impact returns, so investors should carefully research options before purchasing. Getting the right financing is also key to ensure the investment is profitable and does not burden the investor with high interest costs.
The document discusses opportunities for the Singapore Stock Exchange (SGX) in the post-economic crisis environment. It notes that consumer conventions have consolidated across geographies, presenting an opportunity for SGX. It suggests SGX focus on simplification, fairness, and honesty. Specifically, SGX could communicate around new "currencies" like time, information, energy, space, money, and conventions. The branding should be reverent of social context, technology, economics, the environment, and politics. SGX represents the confluence of companies, retail investors, regulators, and more.
FUNDING PPP PROJECTS IN THE CURRENT CLIMATE: Amelia Henning, Royal Bank of Ca...Cathedral Group Plc
Amelia Henning, Vice President at Royal Bank of Canada, discusses funding challenges for public-private partnership (PPP) projects in the current economic climate. While conditions are difficult with high borrowing costs and policy hostility, she argues opportunities remain through decentralization, shaping new policy, and attracting long-term institutional investment. PPPs can succeed by ensuring stable long-term cash flows, strong sponsors, and sensible risk allocation. The right funding sources match the risk profile of construction and operational phases. Well-structured regeneration projects should be fundable if they meet investor needs.
Dear,
“WealthPreneurs Advisory Services” & “IMS proschool” announces the launch of CFP regular classroom training program at Deogiri College, Aurangabad.
A brief overview of the program and the course content is given below.
1) Introduction to Financial Planning*
2) Risk Management & Insurance
3) Retirement Planning & Employee
4) Investment Planning
5) Tax Planning & Estate Planning
6) Advanced Financial Planning (Case Studies)
Duration
6 months (120+ hour’s approx)
Other details
38 online tutorials
Study kit
Online Mock test
Fee Structure
CATEGORY
REGULAR FEE
Regular
36000
Schedule
Sunday (9.30-1.30pm)
For more details, CFP broucher is attached.
For further details email us at, devendrap@proschoolonline.com ,
imsproschool.aurangabad@gmail.com or call +91 800 763 9503
--
Warm Regards,
Devendra Pandit
WealthPreneurs Advisory Services,
In association with - IMS proschool,
Contact Number: +91 800 763 9503.
+91 810 889 7001.
Office Address: Plot No. 8, Anupam Society,
Shrey Nagar, Osmanpura,
Aurangabad, Maharashtra.
P Please consider the environment before printing this email.
The document discusses the marketing of real estate investments. It begins with an introduction to publicly and privately held commercial real estate, as well as an international perspective. It then presents a case study of Falcon Real Estate Investment Company and their chief marketing officer. The document concludes by discussing traditional and alternative global asset classes in real estate and how real estate investing has evolved with private equity models.
1. Captive insurance is becoming more viable for middle-market companies as a way to customize coverage to their needs and gain more control over claims payments compared to traditional commercial insurers.
2. Choosing the right domicile is important, as not all jurisdictions are the same. For a captive to be economically feasible, it needs to operate in a jurisdiction with an efficient and accessible regulatory environment.
3. Proper tax structuring and management of the captive insurer is critical to achieve tax benefits under the Internal Revenue Code and avoid penalties. With the right advisors, captives can provide benefits to middle-market companies while complying with tax laws.
The document is a glossary of financial terms organized alphabetically from A to Z. It provides definitions for over 100 financial terms, ranging from basic terms like "asset" to more specialized terms like "Samurai bond". The definitions are brief but aim to concisely explain the essential meaning and context of each term.
1. The document discusses a corporate trade strategy where companies can sell underperforming assets at full value in the form of trade credits, rather than liquidating assets at a discount.
2. These trade credits can then be used to purchase goods and services, creating cash savings. For example, a company sells $1 million of inventory and receives $1 million in trade credits to purchase media over 3 years.
3. Accounting guidelines require recognizing trade credits as a prepaid expense if utilization is reasonably assured. In this example, the company recognizes a $1 million prepaid asset upfront over the 3 year contract period.
AeFT Original Swap Rent (SM) Product Design White PaperRalph 刘冶民 Liu
This is the combination of the various original SwapRent (SM) and its related consumer financial products, indexing methodology and secondary market REIDeX design white papers written in early 2006. The subsequent patent applications were based on this combined document of those original research papers.
The document discusses financial intermediaries and their role in financial markets. It describes how financial intermediaries such as banks, credit unions, insurance companies, pension funds, finance companies, and mutual funds facilitate borrowing and lending between savers and borrowers. They do this by raising funds from many savers and pooling them to make loans to many borrowers, helping to reduce transaction costs and risks for both groups. The document also discusses some regulatory policies for ensuring the soundness of financial intermediaries.
Zašto je web upotrebljivost važan faktor pri izradi web stranica?Dario Suveljak
"Klikom do frustracije" je prezentacija koja govori o najčešćim problemima, zaprekama i kritičnim točkama sa kojima se Internet korisnici svakodnevno susreću prilikom korištenja web stranica, web kataloga i web trgovina.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness, happiness and focus.
The document analyzes the financial impact and redevelopment alternatives for properties at 350, 360, and 370 S. Washington Street in comparison to the existing uses and a proposed Wilden project. It considers alternative development scenarios at higher densities, measured in floor-area ratios (FAR) of 1.5, 2.5, and 3.0. Higher density developments of mixed office and retail uses could generate annual net revenues to the city of $426,000-$1.3 million, compared to $58,000 for existing uses. Lot consolidation and incentives are recommended to encourage high-quality, higher density redevelopment consistent with the comprehensive plan.
Net lease properties remain an attractive investment for those seeking predictable returns, according to industry leaders. While some question if high investor demand could lead to an overheated market, experts believe the sector will remain stable given targeted acquisition strategies and diverse property types and locations. Leaders from Equity Global Management, Iridium Capital, United Trust Fund and Paragon Real Estate expect continued investor appetite and transaction volume, especially for well-located assets with investment-grade tenants and long-term leases.
This document provides an introduction to real estate investing. It discusses both the advantages and disadvantages of real estate as an investment option. Some key points:
- Real estate can provide potentially high returns but is generally illiquid compared to other assets. It also has high investment thresholds.
- When purchasing properties, investors must consider maintenance costs, property taxes, security, and carefully vet the title to avoid legal issues. Transaction costs like stamp duty are also high.
- Advantages include the potential for fabulous long-term returns, limited downside risk compared to stocks, cash flow from rents, and the tangible and permanent nature of the investment. Gains are also not taxed until the property is sold.
This document provides an introduction to investing in real estate. It discusses real estate as an investment option that has risk, returns, and liquidity like other investments. Real estate also considers individual factors like time horizon, risk appetite, and amount invested. While it can provide appreciation, it also has disadvantages like illiquidity, high investment thresholds, maintenance costs, security issues, high transaction costs, holding costs for urban properties, and the need for thorough due diligence on property titles. Overall, the document outlines real estate as a complex investment option that requires weighing these various factors.
This document provides an introduction to real estate investing. It discusses both the advantages and disadvantages of real estate as an investment option. Some key points:
- Real estate can provide potentially high returns but is generally illiquid compared to other assets. It also has high investment thresholds.
- When purchasing property, investors must consider transaction and holding costs, maintenance costs, security risks, and carefully scrutinize property titles.
- Advantages include the potential for fabulous long-term returns, limited downside risk compared to stocks, cash income from rents, and appreciation without capital gains tax until sale.
- Successfully investing in real estate requires understanding factors like risk, returns, liquidity, and individual investment timelines
This document provides an introduction to real estate investing. It discusses both the advantages and disadvantages of real estate as an investment option. Some key points:
- Real estate can provide potentially high returns but is generally illiquid compared to other assets. It also has high investment thresholds.
- When purchasing properties, investors must consider maintenance costs, property taxes, security, and carefully vet the title to avoid legal issues. Transaction costs like stamp duty are also high.
- Advantages include the potential for fabulous long-term returns, limited downside risk compared to stocks, cash flow from rents, and the tangible and permanent nature of the investment. Gains are also not taxed until the property is sold.
This document provides an introduction to real estate investing. It discusses both the advantages and disadvantages of real estate as an investment option. Some key points:
- Real estate can provide potentially high returns but is generally illiquid compared to other assets. It also has high transaction costs.
- When purchasing property for investment, an investor must consider factors like risk, returns, liquidity, time horizon, transaction/holding costs, and tax implications.
- Real estate has advantages like tangible value that cannot disappear, potential rental income, and no capital gains tax when simply holding a property.
- Downsides include illiquidity, high investment thresholds, maintenance/depreciation costs, and security/management issues.
This document analyzes the residential development business in China using Michael Porter's Five Forces model. It examines the intensity of industry rivalry (neutral to favorable), threat of new entrants (neutral to unfavorable), threat of substitutes (favorable for end use, neutral for investment), bargaining power of suppliers (favorable), and bargaining power of buyers (neutral). Key factors discussed include barriers to entry, differentiation of developers' products, availability of substitutes, developers' relationships with suppliers and power in negotiations, and how buyers' power fluctuates depending on the property cycle stage.
Tierra Grande: Valuation of Commercial Real Estate in Today's MarketMonogram Marketing
This document discusses challenges in estimating commercial property values using direct capitalization when market conditions are sluggish or distressed. Estimating stabilized net operating income and market capitalization rates from comparable property sales can be difficult with limited transaction data. Investor sentiment can also impact capitalization rates if expectations about future rents are unrealistic. The document explores alternative methods like the band of investment approach to estimate capitalization rates when true comparable property sales are scarce.
This document provides general advice about purchasing a first property. It warns that the information should not be considered without taking individual circumstances into account. Investors are advised to obtain specific financial advice before making investment decisions. The document then outlines the buying process, including applying for finance, making an offer, signing contracts, arranging building and pest inspections, settlement, and receiving the keys.
This document discusses reallocating investments from equities to real estate. It notes that home prices are low while rents are increasing, making real estate investing potentially profitable. However, it warns that one needs to avoid pitfalls like assuming a cheap home will rent well or that being a landlord involves no work. Proper screening of tenants and understanding local housing markets are emphasized. Overall, the document analyzes why and how real estate could be a worthwhile investment option currently.
In this 3 sentence summary:
The document discusses a new housing model called Resonance that attracts private investment for affordable housing development to address issues like constrained government funding and a lack of traditional bank financing. Resonance shares costs between a housing association and private investor, allowing the development of affordable rental properties at lower overall costs. An initial pilot project in Scotland successfully demonstrated how the Resonance model can deliver positive outcomes for various stakeholders through an innovative public-private partnership approach.
Introduction To Real Estate Investment
5 Simple Ways To Invest In Real Estate
6 Worst Types Of Real Estate Investment
Key Reasons To Invest In Real Estate
Huge Ticket Size To Enter Real Estate Market
Add Some Real Estate To Your Portfolio
Is Real Estate a Retirement Secrete Weapon?
Impact Of Real Estate In Global Market
Big Daddy’s Of Real Estate
Risk Involved In Real Estate
Current Scenario
Pimco Commercial Real Estate - June 2010Bob Lowery
1. PIMCO undertook a U.S. Commercial Real Estate Project to assess property fundamentals, capital market changes, and valuation uncertainty across major commercial sectors in 10 cities.
2. Meetings with over 100 industry representatives revealed declining property fundamentals but an increase in trophy property transactions, failing to reflect significant valuation uncertainty. Capital market changes since the 1990s crisis will slow the deleveraging process.
3. Macroeconomic headwinds like limited growth, unemployment, and increased savings will force a reevaluation of CRE assumptions and highlight downside risks, making a rapid recovery unlikely. The impaired ability to transfer CRE risk from banks also threatens a stable recovery.
An analysis of performance of real estate investments in onitsha metropolis a...Alexander Decker
The document analyzes the performance of real estate investments in Onitsha, Nigeria and investments in bank shares from 2000-2010. Data on property rental values, capital values, bank share prices and dividends were collected from valuation firms, banks, and the stock exchange. The results showed that residential properties had an average annual return of 9.59%, standard deviation of 3.35%, and coefficient of variation of 0.34, indicating lower risk. Bank shares had a higher average annual return of 16.64% but also higher risk as evidenced by a standard deviation of 38.86% and coefficient of variation of 2.34. Therefore, the analysis found that real estate investments in Onitsha performed better and were less risky
The document provides an overview of commercial real estate yields across various Australian markets in September 2011. In Sydney, yields range significantly between larger shopping centers and smaller retail strips, from 5-7% in prime locations to as high as 11% in lower quality areas. Some traditionally favored Sydney locations have fallen out of favor with both consumers and retailers. In Canberra, a stable public sector has supported a stable economy, but changing consumer preferences have created a two-tier retail market and shift in demand away from some local centers toward larger town centers. Retail yields indicate the level of investment risk across different property types and locations.
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The document discusses the real estate market in India. It notes that the Indian real estate market has seen significant growth in recent years and continues to boom, with development across residential, commercial, and retail sectors. Major real estate companies going public and large investments from both domestic and foreign investors indicate the potential of the Indian property market. The realestateonline.in website provides a platform for buyers, sellers, and dealers of residential and commercial properties across major Indian cities.
The multifamily real estate sector is famous for having outperformed other sectors in the market, especially during the global economic downturn that began in 2007. With fears of another recession on the horizon, this white paper aims to educate readers on the portfolio stability, tax advantages, and passive income benefits which investing in non-traded REITs can bring to investors at any level of their investing careers.
This paper will additionally share economic data and future market predictions from the leading analysts and data houses in the multifamily housing market.
Similar to Real Estate Investing - Real Value (20)
1. Real Value_Apr09:Purpose_July06 4/21/09 4:48 PM Page 32
cover story may 2009 www.capital-me.com
By Ahsan Ali
Real Value Is Real Estate Investment
Still a Wise Choice?
32
2. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 33
As a rule of
thumb, if price
growth is
outstripping
rental growth by
25% over a 12-
month period, do
not buy!
With the global markets in a tailspin,
investment appetite has vanished. The impact is
much more profound for the supposed culprit –
real estate. The “real” in real estate is up for
debate. But despite everything, real estate is
still a viable investment.
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3. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 34
cover story may 2009 www.capital-me.com
The Basics minimum investment horizons mean that this asset
Real estate has been an established investment class class should be selected with care.
since the earliest historical records. Real estate own- The conversion of real estate to cash is usually not a
Like all other
investments, real ership initially was the domain of royalty and the simple process and can take between weeks and
estate is all about wealthy, before land reforms, urbanization and indus- months. Real estate investment trusts (REITs) are
timing. trialization, and implementation of legal systems securities on pools of real estate which are designed
evolved this into a viable investment. to reduce the illiquidity by enabling investors to opt in
Real estate is generally classified into residential or opt out at any given point in time. Even then,
(apartments, villas, houses, townhouses, condomini- because of the underlying factors, this ability is limit-
ums etc,), commercial (office buildings, retail space, ed.
etc.), industrial (factory premises, warehouses etc.) Real estate requires regular maintenance and
and land (developed and undeveloped). upkeep. This can be quite time consuming and prob-
The investment returns on real estate can be com- lematic and can impact the investor’s cash flows.
pared to a traditional bond. The range of the return
varies from: Intrinsic Value
• Conservative returns: Coupon (rental) with capital Unlike stocks and bonds, real estate has an “intrin-
(value) net of transaction cost. sic” and “affinity” value. A holding period in excess of
• Moderate returns: Coupon (rental) with capital 25 years demonstrates that the intrinsic value of the
(value) net of transaction cost, plus capital gain equal property persists even when the depreciation is
to prevailing deposit rates/inflation. 100%, i.e., terminal value of land, listing as heritage
• Aggressive returns: Coupon (rental) with capital site, etc. Some properties have emotional appeal
(value) net of transaction cost, plus capital gain based on previous ownership, aspirational value,
exceeding prevailing deposit rates/inflation. location or other characteristics.
The value of real estate compared to its rental yield Information pools on real estate tend to be localized
is effectively the equivalent of the price-to-earnings by neighborhood. This is crucial; as an asset class,
valuation methodology for stocks. It is important to this means that homogenous analysis is not possible,
understand and quantify the return element for real as the investment returns can vary between two
estate, as this should drive buy/sell decisions for the streets in the same neighborhood. The level of infor-
investors. mation expertise to generate excess return only
Price and rentals mechanics are driven by realistic exists with the local real estate agent.
demand and supply mechanics. Short-term aberra-
tions tend smooth themselves out within a short peri- When to Buy and Sell
od. In the long run, location, amenities, community, Like all other investments, real estate is all about tim-
access, safety, recreational areas and other related ing. The distinct disadvantage stems from the fact
items drive the demand for any locality. that real estate is the most affordable (lax credit
Legislation, social security, employment creation and terms) at the worst possible time to buy. So how do
tax incentives are just some variables impacting real you identify the right timing? By monitoring the fol-
estate. Government policies have a tangible and lowing three things:
direct influence on this investment class.
1. House Price to Rental Index
Disadvantages Common sense dictates that housing prices and
The real estate market is prone to distortion from rentals should rise more or less in unison. An
speculative influences. The availability of credit for excess demand for housing raises rentals, in turn
large segments of society tends to mushroom raising house prices. This gives builders incentive
demand and induce speculative transactions for to construct additional housing, inducing new resi-
short-term gain. Excess liquidity from REITs, funds dents to move to these projects, thus stabilizing
and other instruments tend to “crowd” investment in prices and rentals. The rental and pricing differenti-
attractive areas, creating artificial demand and dis- ation then happens because of location, communi-
torting prices. ty, established amenities, etc. Even then, the high-
Real estate is not a “liquid investment.” Always er-priced real estate attracts a higher rental rate, so
assume a minimum of medium term (in excess of five as a ratio (house price/rental), an equilibrium point
years). Real estate can be a store of value, but the is reached.
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4. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 35
Median US Home Price Relative to Owner’s Rent
Source: National Association of Realtors, U.S. Department of Labor
As the graph points out, any disturbance from the As a rule of thumb, if price growth is outstripping rental
point of equilibrium has to be either due to excep- growth by 25% over a 12-month period, do not buy!
tional demand (population displacement, natural dis-
asters, massive surge in population due to emigra- 2. Global Trends
tion, etc.) or is pure speculation. The consequences Real estate markets tend to exhibit similar trends
are quite evident, as seen in the decline from 2007 globally. The important thing to realize when a trend
until now. is forming.
Source: IPD, NCREIF
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5. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 36
cover story may 2009 www.capital-me.com
By 2006, end real estate returns (local currency 3. Mortgage Data as a Predictor
nominal returns) were dipping in most countries. As Mortgage delinquencies, or the inability of customers
is evident, real estate returns tend to move in a to repay their mortgage installments on time, is a
“band” with very few outliers (in this graph, South leading indicator of things to come. If the level of
Africa). Looking at the trend in this graph, most of the delinquencies is shooting up, it is inevitable that fore-
returns seem to have either plateaued or declined in closures and auctions will follow.
the last period. Not a good indicator for increasing
exposure to real estate.
Mortgage Default Rates
Source: Freddie Mac, March 27, 2008
Decades of credit behavior show that a mortgage sionary phase should not be how much return can be
loan is the last commitment that a borrower reneges generated, but rather, how long investment can be
on. The pyramid of default usually starts from unse- held before divestment.
cured debt (credit cards, store cards, personal loans,
etc.) to vehicle loans and finally, when the consumer
has no other option, mortgages.
To summarize the price/earnings indexes, trends
and mortgage data highlight the key characteristics
of real estate drivers, such as speculative influences, Recession
demand-supply imbalances, excess liquidity, lax cred- provides the
savvy investor
it rules, potential defaults, employment outlook, con-
with great
sumer confidence, etc. When viewed together, they opportunities, as
provide a very good macro insight on whether to buy, long as the
sell or stay put. investment
objectives are
clear.
Recessionary Investment
Recession provides the savvy investor with great
opportunities, as long as the investment objectives
are clear. The key question for the investor in a reces-
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6. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 38
cover story may 2009 www.capital-me.com
Past and Ongoing Real House Price Cycles and Banking Crises:
Peak-to-trough Price Declines (left panel) and Years Duration of Downturn (right panel)
As the graph shows, the average price decline a six-year holding period can be almost 36%. The
during banking crises has been 35.5% and recov- important point is the realization of the holding
ery has taken an average of six years. What is period.
important to note is that aside from the notable
exception of Japan, in all other countries, house Why Real Estate Even Now?
prices actually clawed back the loss in value and As mentioned earlier, real estate is a “tangible” store
posted significant gains even beyond that. For the of value. This commonsensical view is borne out by
keen real estate investor, the average return over an empirical study conducted by MIT.
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7. Real Value_Apr09:Purpose_July06 4/21/09 4:50 PM Page 39
The returns generated on purchase and subse-
quent sales of homes in the U.S. were measured
over a 27-year period. The graph above depicts
406 investment periods; for example, a property
bought in 1983 and sold in 1986 generated an
average return of 11.6%. The astonishing fact that
emerges is that in only 11 (2.7%) of the 406 Ahsan Ali is head of
investment periods were the returns actually neg- Wealth Management
and SME Banking for
ative! This once again points out the fact that real Noor Islamic Bank in
estate over a longer investment horizon is a viable Thinking Things Out the UAE. An avid
investment alternative. The major keys to real estate investing include: supporter of CSR and
development initiatives,
With the global equity markets in disarray, a 1. Clarity of investment objectives (rental yield,
he is involved in
strong point for real estate is the negative corre- investment horizon, capital appreciation, etc.). mentoring, training and
lation between real estate and pretty much every- 2. A good sense of timing for the investment on program management
thing else. When the world is going one way, real the basis of available macro research. with various public-
private partnerships. He
estate should go the other way. 3. The ability to take an educated contrarian view holds an MBA from the
during economic downturns. Institute of Business
4. The ability to prudently leverage to obtain the Administration, Karachi
University, as well an
best results. MS in Financial
With a well thought-out approach, real estate will Economics from the
remain a wise investment alternative. School of Oriental and
African Studies,
London. Ali is a CFA
Charter Holder, an FRM
certified risk manager
and a member of the
Securities and
Investment Institute (SII),
UK.
39